Kenya will carry out a nationwide census of Micro, Small and Medium Enterprises to better understand and support the critical sector, Cabinet Secretary for Cooperatives and MSME Development Wycliffe Oparanya has announced.
Speaking at the unveiling of a national coordinating committee for the upcoming MSME International Trade Fair, Oparanya said the exercise—last carried out in 2016—is urgently needed to provide fresh data to guide policy, funding, and other government interventions.
“We need to carry out a survey to know where these MSMEs are concentrated. Once we know this, we can effectively channel resources and support through our key focus areas,” said Oparanya.
The CS said the lack of up-to-date data is hindering targeted support, especially in areas like financing, market access, digital transformation, and climate resilience—four areas the government has identified as critical to the sector's growth.
He pointed out that MSMEs are one of the five pillars of the government’s economic transformation agenda and warned that ignoring the sector’s needs could fuel more economic discontent.
“We can build roads and infrastructure, but if we do not focus on creating jobs and economic activity through MSMEs, we will still have demonstrations on those same roads,” he said.
To support MSMEs financially, Oparanya highlighted the rollout of a government-backed credit guarantee fund to help de-risk lending to small businesses, which have traditionally been underserved by commercial banks due to perceived high risks.
He also underscored the importance of breaking trade barriers within the East African Community and leveraging Kenya’s strong mobile phone penetration to drive digital adoption across the sector.
Citing global trends, the CS noted that MSMEs are now a priority for the G20 under South Africa’s upcoming presidency. He shared insights from a recent global MSME ministerial conference in South Africa attended by over 40 ministers, saying there is a growing consensus that MSMEs are essential to global economic recovery and stability.
He added that the ministry will also expand MSME Connect, a platform bringing together key players from government, academia, private sector, and regulators such as the Kenya Revenue Authority (KRA), which has faced criticism for its treatment of small traders.
“The KRA has often been seen as harassing small businesses. Their presence here today is important as we seek to create a more enabling environment,” said Oparanya.
The CS also called on organisers of the MSME International Trade Fair—set to take place in Nairobi on November 2 and 3—to ensure representation from all key government ministries and partner states.
He urged participants to benchmark against successful models in countries like India, Brazil, and Germany, where MSMEs benefit from policies such as immediate financing upon award of tenders and prompt payments.
“In Kenya, businesses wait years to be paid, and many collapse in the process. We must fix this,” he said.
The principal secretary in the ministry Susan Mang’eni said the launch sets the stage for Kenya to host the regional trade fair from 1st to 10th November 2025, bringing together MSMEs from across East Africa to network, trade, and showcase innovation.
